) to market perform from market outperform.
Analyst Daniel Renouard says he downgraded due to the magnitude of the miss and limited near-term visibility. He notes he had suspected any shortfall would come from the tape-drive segment, not from media sales or tape automation.
Renouard says he's concerned with the potential for weakness in the tape drive business, as networked-storage penetration increases equate to less tape drives and more pricing pressure. He recommended investors wait for better visibility, stability of tape media, drive sales, and increased revenue before buying Quantum.